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UPDATE 1-Austal wins US Navy deal worth up to $1.6 billion

Thu Nov 13, 2008 6:04pm EST

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(Adds details about the contract)

WASHINGTON, Nov 13 (Reuters) - The U.S. Navy awarded Australia's Austal Ltd (ASB.AX) a $185 million contract on Thursday to design and build a new Joint High Speed Vessel, and said options for nine more ships could bring the total value of the contract to $1.6 bln over time.

The new program, approved last month by Pentagon acquisition chief John Young, will provide fast, shallow draft ships to help the U.S. Navy, Marine Corps and Army transport personnel, supplies and equipment.

Rear Adm. Willam Landay, program executive officer for ships, said the service had leased and operated high-speed ships in the past, but the services now agreed they needed to operate their own.

Work on the first ship for the Army would be completed by Austal at its shipyard in Mobile, Alabama by November 2011, the Navy said. The first Navy ship would be delivered in 2012.

The new ships will be able to transport 600 short tons over 1,200 nautical miles at an average speed of 35 knots. They will be able to operate in shallow ports and waterways, rolling on and off equipment such as a combat-loaded Abrams battle tank.

The ships will also have an aviation flight deck to support day and night air vehicle launch and recovery operations and airline style seating for more than 300 embarked forces and fixed berthing for about 100 more.

The contract calls for a total of 10 ships, five to be operated by the Navy and five by the Army. (Reporting by Andrea Shalal-Esa; Editing by Andre Grenon)



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